CHAPTER EIGHT

MOTIVATION
Motivation
8.1 The Concept of Motivation
• The term motivation derived from the Latin word ‘movere ‘ meaning
“to move.”
• In the present context, motivation represents “those psychological
processes that cause arousal, direction, intensity and persistence of
voluntary actions that are goal oriented.
• Managers need to understand these psychological processes if they are
to successfully guide employees toward accomplishing organizational
objectives.
• As managers analyze their workforces, they can always see some
people who outperform others of equal skill.
• A closer look might reveal instances in which a person with
outstanding talents is consistently outperformed by someone having
lesser talents. Why?
• These latter employees appear willing to exert more effort, to try
harder, to accomplish their goals, often these hard workers are
described by their bosses as “motivated employees.”
 Motivators
• Motivators are things, which induce an individual to perform.
• While motivation reflects wants, motivators are the identified
rewards, or incentives that sharpen the derive to satisfy these wants.
• A motivator is something that influences an individual’s behavior.
The Motivation Cycle
• The starting point in this cycle is a need or a deficiency or a state of
felt deprivation an individual experiences at a particular time.
• This deficiency causes tension (physiological or psychological in
balance), which will be modified by one’s culture and personality to
cause certain wants leading /motivating the individual to some kind of
goal directed behavior.
• This leads to satisfaction and one cycle of motivation will be
completed.
The Motivation Process

1. Need
Deficiency

2. Goal
3. Need
directed
satisfaction
behaviour
• From this we can understand that deficiency triggers a drive
for need satisfaction, which causes an individual to take a
certain course of action that will alleviate a need and reduce a
drive.
• The need for food for example will result in hunger and
hunger will drive or motivate the individual to take action
(eating food), which will achieve the goal.
• This goal attainment will restore the physiological or
psychological balance and reduce or cutoff the drive for food.

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 Motivation Vs Satisfaction
• Motivation refers to the drive and effort to satisfy a want or a goal.
• Satisfaction refers to the happiness experienced when a want is
satisfied.
• In other words, motivation implies a drive toward an outcome, and
satisfaction is the outcome already experienced.
Motivation and Performance
• All too often, motivation and performance are assumed to be one and
the same.
• This faulty assumption can lead to poor managerial decisions
• The following formula for performance helps put motivation into
proper perspective:

Performance = Ability x Motivation x Environmental conditions

• Thus, we see motivation is a necessary but insufficient contributor to

job performance.
• The multiplication sign is used to emphasize how a weakness in one
factor can negate the other.
• The above relationship between performance and motivation clearly
shows us that managers should hire individuals who have the ability
to do what is required. After that, the management challenge is
providing environmental conditions that nurture and support
individual motivation to work toward organizational goals.
• Keeping other variables constant, motivation and performance have
neither positive nor negative relationship. As motivation increases,
job performance increases, reaches its maximum and the decreases.
8.2 Theories of Motivation
a. Carrot and Stick Approach
• This metaphor relates the use of rewards and penalties in order
to induce desired human behavior.
• It comes from the old story that to make a donkey move one
must put a carrot in front of it and if it does not move beat it
with stick from behind.

• Despite all the researches and theories of motivation that have

come to the fore in recent years, reward and punishment are
still recognized/considered by strong motivators.  
• Carrot - money in the form of pay or bonuses.
• Stick – fear such as fear of loss of job, loss of income,
reduction of bonuses demotion or some other penalty.
b. Money as a Motivator
• Even if under the carrot and stick approach money as a sole
motivator has been criticized, it is used as a motivator
(motivating factor) but not the only one. Money can be used as a
motivator under the following conditions:
 For people who have low-level standards of living and who badly need it
for their life
 When the amount is so significant that the organization uses it for
competitive purposes.
 When the payment is so differentiated that even at equal position
discriminatory payment is made for people with different levels of
performance.
c. Maslow’s Need Hierarchy
• It is one of the motivation theories developed by
psychologist Abraham Maslow.
• Maslow proposed that:
motivation is a function of needs,
human needs are arranged hierarchically
• The hierarchy of needs is based on four premises:
Only an unsatisfied need can influence behavior; a
satisfied need is not a motivator. What motivates a
person is what s/he does not have but not what s/he has.
A person’s needs are arranged in a priority order of
importance. Thus, the priorities (hierarchy) go from the
most basic needs to the most complex.
As the person’s needs are met on one level, the person
advances to the next level of needs. S/he will focus on
the first level need until it is minimally satisfied before
moving to the next level.
If satisfaction is not maintained for a once-satisfied
need, it will become a priority need again.
• Based on the above premises, Maslow proposed that human
needs form a five-level hierarchy.
 Physiological Needs
 Safety /Security Needs
 Social/ Love/ Affiliation Needs
 Esteem Needs
 Self-Actualization/Realization Needs
i. Physiological Needs
• These are the basic needs for sustaining human life itself, such as food,
water, air, shelter,
• Maslow took the position that until these needs are satisfied to the
degree necessary to maintain life, other needs will not motivate people.
• In the working environment, management tries to satisfy these needs
primarily through salary and by eliminating threats to physical safety.
ii. Safety /Security Needs
• When physiological needs are satisfied, safety needs become a priority
as a motivator.
• Safety needs include :
freedom from fear and anxiety,
job security,
insurance programs, etc
• As with physiological needs, management attempts to satisfy safety
needs primarily through salary.
iii. Social/ Love/ Affiliation Needs
• Once we feel reasonably safe and secure, we turn our attention to
relationships with others in order to fulfill our belongingness
needs, which involve the desire to affiliate with and be accepted
by others i.e. the need for friendship, companionship, and a place
in a group. Love needs include both giving and receiving. These
needs are met by frequent interaction with fellow workers and
acceptance by others. 
iv. Esteem Needs
• Esteem needs include the desire for both self-esteem (self
respect) and public esteem, and recognition by others.
• These needs take two different forms:
 First, we have a need for competency, confidence and independence.
 We also want the prestige, status, recognition and appreciation that
others bestow on us.
v. Self-Actualization/Realization Needs
• Refers to the need for fulfillment, the desire to become
what one is capable of becoming-to maximize one’s
potential and to accomplish something.
• For the athlete, it may be breaking a world’s record; for
the research scientist, it may be finding a cure for
HIV/AIDS; and for the physical therapist, it may be the
satisfaction of helping a child walk or laugh for the first
time.
• Maslow’s hierarchy has not found widespread support
from management researchers.
• Beyond the first two basic needs, people vary in their
need emphasis.
• Some may seek social-need satisfaction, while others
may emphasize esteem needs or self-actualization
needs.
• Thus, each individual may respond differently to
organizational characteristics.
• Moreover, the steps in Maslow’s hierarchy may not be
necessarily experienced in a sequential manner.
• People may have more than one need at the same time.
 Need Theories: A Comparison
Growth needs

5. Self-actualization needs
• Growth needs
4. Esteem needs
Deficiency Needs

3. Social needs • Relatedness needs

2. Safety needs
• Existence needs

1. Physiological needs

Maslow’s need hierarchy theory Alderfer’s ERG theory

4
d. Herzberg’s Two Factor Theory
• Herzberg developed a theory known as the two-factor theory
of motivation.
• The initial framework for the two-factor was derived from
interviews with accountants and engineers
• The accountants and engineers were asked to provide
interviewers with examples of time they felt exceptionally
good or exceptionally bad about their jobs or job related
issues that made them feel good or bad.
• According to the analysis, although an unpleasant work
environment might be a reason given for job dissatisfaction, a
pleasant work environment is rarely cited as a reason for job
satisfaction.
• This suggested that job satisfaction and job dissatisfaction are
not simple opposites.
• Traditionally, managers viewed job satisfaction and job
dissatisfaction as opposite ends.
• In contrast, Herzberg's findings suggested the opposite of
satisfaction is not dissatisfaction, but rather ‘no satisfaction’
• Herzberg labeled the factors that produced job satisfaction
as motivators.
• His analysis indicated these factors are directly related to
job content.
• The absence of motivational factors may not result in dissatisfaction,
but their presence is likely to motivate employees to excel.
• When motivators are absent, workers are neutral toward work, but
when motivators are present, workers are highly motivated and
satisfied.
• Herzberg labeled the factors that led to job dissatisfaction as hygienes
and found they are related more to the work setting, or job context,
than to job content.
• These factors do not necessarily motivate employees to excel, but
their absence may be a potential source of dissatisfaction, low morale,
and high turnover.
• When hygiene factors are poor, work is dissatisfying.
• However, good hygiene factors simply remove the dissatisfaction;
they do not by themselves cause people to become highly satisfied
and motivated in their work.
 Herzberg's Motivators and Hygiene's

Motivators Leading to Job Hygienes Leading to

satisfaction Dissatisfaction

• Policies and
• Achievement
administration
• Recognition • Supervision
• Work it self • Relations with peers
• Responsibility • Working Condition
• Advancement • Pay
• Personal growth • Job Security
• Thus, to the degree that motivators are present in a job,
satisfaction will occur, when absent, motivators do not lead to
dissatisfaction.
• And, to the degree that hygienes are absent from a job,
dissatisfaction will occur, when present hygienes prevent
dissatisfaction but do not lead to satisfaction.
 3 Motivational Need Theories
Maslow Alderfer McClelland
Self-actualization Growth Need for
Achievement
Higher Esteem
self
Order interpersonal
Need for
Power
Needs
Belongingness
(social & love) Relatedness Need for
Affiliation

Safety & Security

Lower interpersonal
Order physical

Needs Existence
Physiological
 Expectancy Theory
• Expectancy theory is based on the assumption that
salespeople have expectancies about what they
should receive from their employer as a result of their
work efforts.
• What is the probability of success?
• Expectancy is the salesperson’s estimate of the
probability that expending a given amount of effort on
a task will lead to an improved level of performance
on some dimension.
• People will be motivated to engage in a behavior (make a
choice) to the degree that they believe that the behavior
will lead to a valued outcome
FIGURE FOUR QUESTIONS SALESPEOPLE ASK TO DETERMINE HOW MUCH
EFFORT THEY WILL DEVOTE TO THEIR JOBS.

“What Is “Will I Be “Are the “Are the

the Probability Rewarded Rewards Rewards
of Success?” for Success?” Worth It?” Fair?”

Rewards Equity Satisfaction

Motivation Performance Determination
Intrinsic Intrinsic
to Work Level Inputs vs. Outputs
Extrinsic Extrinsic

Feedback
 Expectancy Theory: An Overview
Effort Skills and
Expectancy abilities

Performance X
Instru- Job
mentality Motivation Performance
Rewards X
Valence of
Rewards Role perceptions
and opportunities

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 Expectancy Model:
Components

Expectancy: The degree to which you

expect that hard work (effort)
will lead to good performance
or high accomplishments
Instrumentality: The perception that if you
perform well you will be
rewarded
Valence: How much do you value the
rewards you may receive
 Will i be rewarded for success?
• The salesperson’s estimate of the probability that achieving an
improved level of performance dimension will lead to increased
attainment of a particular reward or outcome may be defined as
instrumentality.
• ARE THE REWARDS WORTH IT?

• Valence for rewards refers to the value the person places on the reward.
• ARE THE REWARDS FAIR?
• If inequity is perceived, the person may be motivated to restore equity
using one of four methods.
• Managerial Implications of Expectancy Theory
1. Increase expectancies.
2. Make performance instrumental toward positive outcomes.
3. Identify positively valence outcomes.
 First, the person may increase or decrease the level of input that
may, in turn, influence outcomes.
 Second, the person could distort the facts by convincing himself
or herself that equity really does exist even though it may not.
 Third, the person could choose another person with whom to
compare the ratio of outcomes to inputs.
 Fourth, the person could influence other salespeople to decrease
the amount of effort they are putting into their job.